Achi news desk-
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- Byju’s Closes 30 Learning Centres, 262 To Run On Hybrid Model As Part Of Cost-Cutting Move
New Delhi53 minutes ago
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Edtech company Byju’s, which is facing a cash crunch, has closed 30 of its 292 learning centres. Byju’s parent company Think and Learn issued a statement saying that Byju’s has decided to close these learning centers as a cost-cutting measure.
The company said the remaining 262 learning centers will continue to run on the hybrid model. Earlier, Byju’s had closed all its other offices except its headquarters. Also, all employees were asked to work from home.
Byjus said- We are proud of the dedication of teachers and the performance of students
Byju issued a statement saying that we are very proud of the dedication of our teachers and the performance of our students. Focusing on quality helps most learning centers become profitable. In the coming years, 262 learning centers will continue to work in a hybrid model by integrating the best and latest technology.
The cash crisis escalated due to a dispute
Byju Investors, Prosus NV, Peak This fundraising is 99% smaller than the previous round. The previous funding round was at a valuation of $ 22 billion ie around Rs 1.82 lakh crore.
Byju investors have accused the company of embezzlement of $533 million (about Rs 4,411 crore) in the US and demanded a ban on the rights issue worth Rs 1,655 crore. This was described as illegal and against the law.
Ravindran mortgaged his house to pay his salary
Earlier, the founder of Byju, Byju Raveendran, had mortgaged his house as well as the houses of his family members to pay salaries to the employees. He raised about Rs 100 crore by mortgaging two houses in Bengaluru and paid salaries to about 15,000 workers.
Byju investors exclude Raveendran from the board
On February 23, Byju investors removed the company’s founder-CEO Byju Raveendran, his wife Divya Gokulnath and his brother Riju Raveendran from the board after the EGM. A number of top class investors like Prosus, General Atlantic and Peak XV had voted at the EGM to get rid of Raveendran and his family.
Ravindran said – I will continue to be the CEO of Byju’s
After this, on February 24, Byju Raveendran had written a letter to the employees ‘I am writing this letter to you as the CEO of our company. Whatever you have read in the media is wrong. I will continue to be the CEO of the company, and the management and board will also remain the same.
Raveendran further said, ‘The claims made by a small group of select minority investors that they passed the resolution at the CCE unanimously are completely false. Out of 170 shareholders, only 35 ie around 20% of the shareholders voted in favor of the proposal. This in itself shows the very limited support this irrelevant meeting received.
Ravindran and his family have a stake of around 26% in the company.
According to reports, investors took this decision because of mismanagement and failures in the management led by Raveendran. The shareholders who called the EGM hold a total stake of more than 30% in Byju’s. Raveendran and his family have a stake of around 26% in the company.
At the CCA, investors also passed resolutions to reform the leadership, reconstitute the board and initiate a forensic investigation into governance offences.
3 big things that happened with Byju’s recently
- The Board of Control for Cricket in India initiated insolvency proceedings against Byju’s. Byju’s is accused of failing to pay ₹158 crore.
- ED sends notice in FEMA violation case worth over Rs 9,000 crore. FEMA was formed in 1999 regarding the flow of foreign money.
- The owner of the property threw out the employees of the Gurugram office for non-payment of rent. Their laptops were confiscated.
Byjus’ loss increases to Rs 8,245 crore in 2022
Ed-tech company Byju’s has suffered a loss of ₹ 8,245 crore in FY 2022. The deficit in FY 2021 was Rs 4,564 crore. That means the company’s loss has almost doubled. The company’s total revenue during this period was ₹ 5,298 crore. Revenue in 2021 was Rs 2,428 crore. That means there was a 118% jump in revenue.
The parent company of Byju Think and Learn has filed its audited financial report with the Registrar of Companies. Almost half of the losses (around Rs 3,800 crore) are due to companies like WhiteHat Jr and Osmo. These are two major acquisitions made by the company.
